Nike is set to undergo significant changes, including job cuts, as part of a restructuring effort aimed at becoming “more agile, efficient, and athlete-focused,” according to CEO Elliott Hill. This initiative comes in response to a 50% decline in the company’s stock value and weak sales, particularly in China, where revenues dropped 26% last quarter.
Hill communicated in a memo that these layoffs, which will begin in 2027, will lead to “fewer roles across Nike,” although exact numbers were not disclosed. He emphasized the need for transparency throughout this process.
The restructuring, termed “Pace,” aims to modernize operations and is expected to save approximately $2.5 billion by fiscal 2031. It involves reorganizing into three geographic regions, establishing a new campus in Bengaluru, India, and shifting some leadership roles closer to the markets they serve.
Hill noted that while immediate job functions remain unchanged for most employees, the company will invest in areas like product innovation and consumer connection. More details on the restructuring will be shared during Nike’s Investor Day on Nov. 16–17.
